trade agreements, complex network and foreign direct investment: an application of a three-dimensional panel model

This study examines the influential role of foreign direct investment (fdi) in 11 developing countries by analyzing the impact of three key groups of variables: membership in trade agreements, network index measures, and economic indicators. utilizing panel data from eleven selected countries, namely brics, shanghai cooperation organization (sco), developing eight (d8), and economic cooperation organization (eco), over the period 2009–2023, the analysis employs a three-dimensional panel model. findings reveal that membership in the eco trade bloc has a statistically significant and positive effect on fdi among its member countries, whereas the impacts of other regional trade agreements are not significant. among the network indices, both degree centrality and pagerank demonstrate significant positive effects on fdi, underscoring the importance of network connectivity. furthermore, economic variables such as gdp per capita, trade openness, and governance quality positively influence fdi inflows, while inflation exhibits a negative relationship. the results underscore the critical importance of regional trade integration, enhanced network connectivity, and economic stability in attracting fdi. these insights offer actionable policy recommendations for improving fdi inflows, particularly for countries like iran, by emphasizing strengthened trade agreements, network development, and economic reforms.